FOR IMMEDIATE RELEASE: February 27, 2015
NAFA DOL Fiduciary Duty Proposal Response
WASHINGTON, D.C. - On Tuesday, February 24, 2015, NAFA issued an email alert regarding news from the White House that the Department of Labor (DOL) plans to move forward with a revised fiduciary rule proposal. Below is NAFA's official response to these events:
NAFA strongly urges caution as the Department of Labor moves forward with its proposed rule changing the definition of "fiduciary" under ERISA. While it is laudable to stop bad actors, we are concerned about the potential adverse impacts of the proposal on consumers, small businesses and IRAs. DOL's recent statement that many financial services professionals care more about their personal compensation than the needs of their clients runs contrary to our members' professionalism, existing robust regulation and consumer satisfaction rates. While the specific details of the revised proposed rule are not known, commentary from the DOL, along with changes that were proposed in the 2011 withdrawn rule, suggest that the DOL is advocating an onerous, one-size-fits-all approach that will unquestionably have harmful consequences. We must preserve consumer access to investment education, product choice and affordability.
For additional information regarding the issue, the White House Council of Economic Advisors released a memorandum and report in conjunction with President Obama's speech at an AARP event held earlier this week.
- View the AARP Address
- View the White House Paper on "The Effects of Conflicted Investment Advice on Retirement Savings" issued by the Council of Economic Advisers
- View Lindsay Holst's White House Blog on "Conflicts of Interest"
NAFA and our fellow industry trade groups will be monitoring this issue closely. We will respond to developments as they occur in a manner consistent with protecting the best interests of our membership and the industry as a whole. We will keep you apprised of any involvement requested in the weeks to come.
NAFA, the National Association for Fixed Annuities, is the premier trade association exclusively dedicated to fixed annuities. Our mission is to promote the awareness and understanding of fixed annuities. We educate annuity salespeople, regulators, legislators, journalists, and industry personnel, about the value of fixed annuities and their benefits to consumers. NAFA's membership represents every aspect of the fixed annuity marketplace covering 85% of fixed annuities sold by independent agents, advisors and brokers. NAFA was founded in 1998.
Director of Communication
National Association for Fixed Annuities
1155 F Street Suite 1050
Washington, DC 20004